KEY HIGHLIGHTS
- 18 months of frozen DA/DR arrears remain unpaid for central staff and pensioners
- Government has again cited COVID-era fiscal pressure as the reason
- No clear commitment yet, even as DA has risen to 58% in 2025
For central government employees and pensioners, the long wait continues.
The 18 months of frozen Dearness Allowance (DA) and Dearness Relief (DR) is still unpaid.
These arrears relate to the COVID years, when many households were already under stress.
From rising grocery bills to medical costs, the pinch is still felt today.
Why the DA Was Frozen in the First Place
During the pandemic slowdown, the government paused three DA instalments.
These were due from January 2020, July 2020, and January 2021.
The aim was simple — manage spending during lockdowns and emergency welfare costs.
DA hikes restarted from July 2021, but the blocked period was never cleared.
| Period | DA Status | Impact |
|---|---|---|
| Jan 2020 – Jan 2021 | Frozen | 18 months arrears unpaid |
| July 2021 onwards | Restored | Regular DA increases resumed |
| 2025 | DA at 58% | No arrears settlement |
Official Government Position in 2025
As of now, the Finance Ministry’s stand remains unchanged.
The argument is that paying arrears would place a heavy burden on finances.
Officials have repeatedly linked the freeze to COVID-era losses.
There has been no official date or assurance on clearing the backlog.
In simple terms — the freeze helped the country then, and the government sees it as closed.
Recent DA Increase: What Employees Are Getting Now
While arrears are stuck, DA itself has gone up in 2025.
This offers some monthly relief, but it’s not the same as arrears payment.
Sample Impact of DA Hike (55% to 58%)
- ₹18,000 basic pay: +₹540/month
- ₹40,000 basic pay: +₹1,200/month
- ₹60,000 basic pay: +₹1,800/month
- ₹9,000 minimum pension: +₹270/month
Over three months, this adds up, but the 18-month dues remain untouched.
Why Employees & Pensioners Are Still Upset
For many retirees and staff, this isn’t just about money.
It’s about fairness after years of service.
During COVID, salaries were frozen while expenses climbed.
Today, inflation is still high — from vegetables to electricity bills.
Many feel the sacrifice was one-sided, with no closure even in 2025.
What About the 8th Pay Commission?
There is growing talk about the 8th Pay Commission, expected around 2026.
One big question remains — will DA be reset again?
If that happens, the old arrears issue may fade further into the background.
So far, there is no official link between arrears payment and the next pay panel.
Final Word
As things stand, 18 months of DA/DR arrears remain unpaid, with no promise yet.
DA hikes continue, but the past dues are still in limbo.
For employees and pensioners, hope remains — but expectations are now realistic.
If there’s any shift, it will likely come only with policy-level decisions, not rumours.
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